How do short-term rental yields in Dubai compare to other global cities?
Short-term rental yields in Dubai are highly competitive compared to other global cities, driven by the city's thriving tourism and business environment. Dubai's rental yields typically range from 5% to 10%, depending on the location and property type, making it one of the top markets globally for short-term rental investments.
For example, prime areas like Downtown Dubai and Dubai Marina generate yields between 6.31% and 6.79%, especially for studios and one-bedroom apartments. In contrast, more affordable but high-demand areas like Jumeirah Village Circle (JVC) and Dubai Silicon Oasis (DSO) can offer yields as high as 7% to 9%, making these regions attractive for investors seeking better returns on smaller investments. By comparison, rental yields in global cities like London and New York often range between 2% and 5%, making Dubai's short-term rental market particularly lucrative.
Additionally, Dubai's favorable regulatory environment, with no property taxes and minimal transaction costs, further boosts the profitability of short-term rentals, offering a tax-efficient investment platform compared to other cities globally. Combined with a robust tourism sector and year-round demand, short-term rentals in Dubai offer excellent returns for investors looking to maximize rental income.